News

OFFICIAL LETTER NO. 47199/HAN-QLDN5 DATED 18 SEPTEMBER 2026 PROVIDING GUIDANCE ON PERSONAL INCOME TAX (“PIT”) DEDUCTIONS FOR MEDICAL AND EDUCATION EXPENSES

On 18 September 2026, the Hanoi City Tax Department issued Official Letter No. 47199/HAN-QLDN5 providing guidance on the policy of deducting medical and education expenses from income subject to PIT, applicable from 01 July 2026, specifically:

  • Applicable persons: Resident individuals earning income from salaries and wages are entitled to deductions for medical and education – training expenses of the taxpayer and their dependants.
  • Deduction levels:
    • Medical expenses: deductible in respect of expenses for medical examination and treatment at domestic medical establishments falling within the list of services covered by health insurance, up to a total of VND 23 million/year;
    • Education – training expenses: tuition fees at domestic education and training establishments, including preschool, general, vocational and university education and other professional skills training, with a maximum deduction of VND 24 million/year.
  • Conditions for application:
    • Having lawful invoices and documents bearing the information of the taxpayer or their dependants; in particular, medical expenses must be accompanied by a statement of medical examination and treatment expenses in accordance with the regulations of the Minister of Health.
    • The deductible expenses must be actually paid by the individual and must not be paid from other sources, including sponsorships, support or payments on behalf by organisations or individuals, the state budget, the social insurance fund, health insurance or insurance payouts in any form.

Note: Deductions no longer apply to support or payments on behalf by the employer that are not included in taxable income, such as support for employees or their relatives suffering from critical illnesses, tuition fees for children of foreign employees in Vietnam or children of Vietnamese employees working abroad, and training expenses for improving qualifications and skills relevant to the job. Medical expenses that have already benefited from the tax reduction policy for critical illnesses may not be double-counted under this deduction. Employees claiming deductions for medical and education expenses must finalise their PIT directly with the tax authorities and may not authorise the enterprise/income-paying entity to carry out the finalisation on their behalf.